I read in a US News article some time ago that in 1960 the top marginal rate on filers with over $1 million in income sat at 91 percent. The actual effective tax rate paid for the same million-dollar bracket was just 46 percent due to the use of deductions and other legal techniques to reduce one's overall tax burden. I will try to find that article if you like.
As for the other part of my post, its not that the collection isnt being done, its that there's no REAL way to track REAL income of many professions. Think of all the people you may hire to do something; painter, auto repair, AC repair, lawyer, therapist, plumber, ANY kind of vacation rentals of any kind, etc.
NONE of those people are getting a W2 or a 1099. They are considered "reported income". And as such, they can "report" pretty much anything they want. Where they get caught is claiming a 50k income but living a 200k lifestyle. I have some rental properties. I pay people to fix things all the time (unfortunately). Sometimes i write a check to the company name, other times i write a check to the man; its HIS company. I get a receipt but thats it. He can report that he did 100 service calls last year or he can report 75. Same with all those others; they can claim whatever they want. Your therapist can report 4 patients a day or 6. whatever she wants. TONS of money go untaxed. I see it every day, every year. Only an audit can catch any of it & every stated income earner cant be audited; theres way too many of them.
But whenever your city or county wants a new school or a new road, what do they do? They ask for a .01 sales tax. And most of the time the voters approve. Because they know that EVERYONE is paying. A sales tax is the only way to truly tax ALL income. And get a larger share of the wealthy's income too. Because trust me, rich people spend a LOT of money.
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